Housing Remains Great Opportunity for Wealth Creation

CoreLogic’s Home Price Index showed that home prices nationwide were essentially flat in July after strong growth seen from March through June. Prices were also 4.3% higher when compared to July of last year. CoreLogic forecasts that home prices will rise 0.2% in August and 2.2% in the year going forward, though their forecasts tend to be conservative.

What’s the bottom line? While home price gains have been slowing, they are expected to continue. The latest Fannie Mae and Pulsenomics Home Price Expectations Survey of over 100 of the top housing experts in the country showed that respondents’ average expected appreciation over the next five years is 20% cumulatively. To quantify this, if you bought a $500,000 home and we saw 20% appreciation over the next five years, you would gain $100,000 in appreciation alone.

This survey and appreciation data show that housing remains a great investment for wealth creation.